U.S. Department of Transportation Office of the Secretary of Transportation

DEPARTMENT ACTION ON APPLICATION IN DOCKET DOT

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(Filed November 25, 2014 )

A pplic ation of Latam Airlines Group S.A. d/b/a LAN Airlines (LAN) f or a statement of

a uthorization to display the “NC” d esignator code of Northern Air Cargo, Inc. (NAC) on LAN flights in either direction from points behind Chile, via Chile and intermediate points, to a point or points in the United States and beyond, pursuant to a code

- share arrangement with NAC for the carriage of mail.

* Approved under assigned authority (14 CFR §385.13).

Date of Action: December 5 , 201 4

______________________________ Director, Office of International Aviation

This action is subject to the conditions attached. Persons entitled to petition the Department for review of this action under the Department’s regulations, 14 CFR §385.30, should file their petitions within seven days of the date of this action. This action is effective immediately, and the filing of a petition for review

will not alter its effectiveness.

An electronic version of this document is available on the World Wide Web at http://www.regulations.govThe operations authorized here are subject to the following conditions:

(a) The statement of authorization w ill remain in effect only as long as (i) LAN and NAC continue to hold the necessary underlying authority to operate the code

- share services at issue, and (ii) the agreement providing for the code

- share operations remains in effect.

(b) LAN and/or NAC must notify the Department no later than 30 days before they begin any new code

share service under the code

- share services authorized here. Such notice shall identify the market(s) to be served and the date on which the service will begin. Such notice should be filed in Docket DOT

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( c ) LAN and/or NAC must promptly notify the Department if the agreement providing for the code

- share operations is no longer effective or if the carriers decide to cease operating all or a portion of the approved code

- share services. Such notices should be filed in Docket DOT

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( d ) Notwithstanding any provisions in the contract between the carriers, our approval here is expressly conditioned upon the requirements that the subject foreign air transportation be sold in the name of the carrier holding out such service in the computer reservation systems and elsewhere; that the carrier selling such transportation ( i.e., the carrier shown on the waybill ) accept responsibility for the entirety of the

code

- share journey for all obligations established in it s contract of carriage; and that the cargo liability of the operating carrier be unaffected

.

(e) The authority to operate to third countries is subject to the condition that any service provided under

the statement of authorization shall be consistent wit h all applicable agreements between the United States and the foreign countries involved. Furthermore, (i) nothing in the award of this statement of authorization should be construed as conferring upon NAC rights (including code

- share, fifth freedom

inter mediate and/or beyond rights) to serve markets where U.S. carrier entry is limited unless NAC notifies the Department of its intent to serve such a market and unless and until the Department has completed any necessary carrier selection procedures to deter mine which carrier(s) should be authorized to exercise such rights; and (ii) should there be a request by any carrier to use the limited

- entry route rights that are included in the authority of NAC by virtue of the statement of authorization granted here, but that are not then being used by NAC , the holding of such authority will not be considered as providing any preference for NAC in a competitive carrier selection proceeding to determine which carrier(s) should be entitled to use the authority at issue.

( f

) The authority granted here is specifica lly conditioned so that neither LAN nor NAC shall give any force or effect to any contractual provisions between themselves that are contrary to these conditions.

We may amend, modify, or revoke the authority g ranted at any time without hearing at our discretion.

1 LAN provided notice of its intent to engage in code

- s hare services by displaying NAC’s code between open

- skies points.

2 We expect this notification to be received within ten (10) days after such non

- effectiveness or of such decision.